With the increasing popularity of cloud technology, businesses are starting to explore the idea of getting cloud accounting software. Here are some things to consider when deciding between cloud and on-premise accounting software.
- Data security
One of the biggest issues with hosting data in cloud is its vulnerability to data mining and ransomware. Even IT giants like Apple faces hacks from time to time therefore for businesses that require extra security, cloud solutions might not be the best option. On the other hand, on-premise solutions host its data in in-house servers to offer better protection.
With greater data security comes higher cost. An on-premise solution requires server hardware, licenses, maintenance work and IT employees among others, that are all in all significant expenses to the company. Cloud accounting software works on a subscription basis that allows subscribers to pay for a smaller amount monthly or yearly. However, with add-ons such as CRM and HRM, it can amount to a huge sum. The cost factor is largely dependent on the company’s budget and needs.
If you are required to work on the go or station out of the office, a cloud accounting software can benefit you greatly as you will be able to access the data anywhere you go as long as there is internet connection. As on-premise solutions are installed locally, it may be a hassle to access, most of the time through a third-party support. Security is also one of the issue when accessing an on premise software remotely.